LEG 100 Week 10 quiz| Questions & Answers
(Complete Solutions 100% Correct)
A business corporation can be incorporated under either state law or federal law. -
✔✔False
Matt, a shareholder, can run for director by simply placing his name on the company's
proxy statement. - ✔✔False
Sara decided to incorporate her business under the name Gomo, Inc. Before Gomo was
incorporated, Sara signed a contract in the name of Gomo, Inc. to lease a store front.
Sara did not tell the other party that Gomo was not yet formed. Sara is personally liable
on the lease. - ✔✔True
A manager who has engaged in self-dealing has violated the duty of loyalty to the
corporation, unless the self-dealing was entirely fair to the corporation. - ✔✔True
A director violates the corporate opportunity doctrine if he or she competes with the
corporation, unless the disinterested directors approve of the director's actions. -
✔✔True
The Truth-in-Lending Act regulates interest rates and the terms of loans. - ✔✔False
The Fair Debt Collection Practices Act prohibits which of the following practices? -
✔✔A debt collector falsely representing himself as a lawyer
The two federal agencies charged with enforcing consumer laws are the Federal Trade
Commission and the Federal Communications Commission. - ✔✔False
(Complete Solutions 100% Correct)
A business corporation can be incorporated under either state law or federal law. -
✔✔False
Matt, a shareholder, can run for director by simply placing his name on the company's
proxy statement. - ✔✔False
Sara decided to incorporate her business under the name Gomo, Inc. Before Gomo was
incorporated, Sara signed a contract in the name of Gomo, Inc. to lease a store front.
Sara did not tell the other party that Gomo was not yet formed. Sara is personally liable
on the lease. - ✔✔True
A manager who has engaged in self-dealing has violated the duty of loyalty to the
corporation, unless the self-dealing was entirely fair to the corporation. - ✔✔True
A director violates the corporate opportunity doctrine if he or she competes with the
corporation, unless the disinterested directors approve of the director's actions. -
✔✔True
The Truth-in-Lending Act regulates interest rates and the terms of loans. - ✔✔False
The Fair Debt Collection Practices Act prohibits which of the following practices? -
✔✔A debt collector falsely representing himself as a lawyer
The two federal agencies charged with enforcing consumer laws are the Federal Trade
Commission and the Federal Communications Commission. - ✔✔False
